Computing under- and overapplied overhead LO₇ Cooper Company had a remaining credit balance of $20,000 in its under- and overapplied factory overhead account at year-end. The balance was deemed to be large and, therefore, should be closed to Work in Process, Finished Goods, and Cost of Goods Sold. The year-end balances of these accounts, before adjustment, showed the following:

Work in Process.. Finished Goods. Cost of Goods Sold Totals..... $ 25,000 50,000 125,000 $200,000